Published on 2/9/2018 in the Prospect News Structured Products Daily.
New Issue: BofA prices $2.1 million contingent income callables tied to indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, Feb. 9 – BofA Finance LLC priced $2.1 million of contingent income issuer callable notes due Aug. 8, 2019 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.95% if each asset closes at or above its 70% threshold on the quarterly determination date.
The notes are callable at par on any interest payment date after six months
The payout at maturity will be par plus the coupon unless any asset finishes below its 70% threshold, in which case investors will be fully exposed to any losses of the worst performing asset.
The notes will be guaranteed by Bank of America Corp.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable notes
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| Underlying assets: | S&P 500 index, Russell 2000 index and iShares MSCI EAFE ETF
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| Amount: | $2.1 million
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| Maturity: | Aug. 8, 2019
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| Contingent coupon: | 8.95% annualized, payable quarterly if each asset closes at or above threshold level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus coupon unless any asset finishes below threshold, in which case 1% loss for each 1% decline of worst performing asset
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| Call option: | At par plus any coupon due on any contingent interest payment date beginning Aug. 8, 2018
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| Initial levels: | 2,691.23 for S&P, 1,513.83 for Russell and $70.29 for ETF
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| Thresholds: | 1,888.86 for S&P, 1,059.681 for Russell and $49.20 for ETF; 70% of initial levels
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| Pricing date: | Feb. 5
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| Settlement date: | Feb. 8
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| Agent: | BofA Merrill Lynch
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| Fees: | 0%
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| Cusip: | 09709TDG3
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